CAD Steady Amid Soft USD and Tariff Concerns Ahead of Labor Report

CAD Remains Range-Bound as Traders Await Labor Data and Monitor US Tariff Moves

Thursday, July 10 – The Canadian Dollar (CAD) is showing limited movement today, with mild overnight strength reflecting the broader softness in the US Dollar (USD). However, market sentiment remains cautious amid potential headwinds from new US copper tariffs and anticipation around Canada’s upcoming labor market data.

CAD Stabilizes Amid USD Weakness

The CAD has mirrored the USD’s overnight retreat, staying largely within a neutral range against the US Dollar. The USD/CAD pair briefly tested above the 1.37 level earlier this week but lacked conviction, with technical momentum appearing mixed and indecisive.

“The CAD’s equilibrium estimate vs. the USD remains at 1.3589, indicating mild USD overvaluation,” analysts note.

Tariff Risks Cloud Outlook

President Trump’s copper tariff announcement raises concerns for Canadian exporters, particularly if no exemptions are granted in current trade talks.

“This development could materially affect Canada’s export sector unless a carve-out is negotiated,” one source suggests.

Technical Outlook: Mixed Near-Term Bias

• USD/CAD Resistance: 1.3700
• Support Level: 1.3580
• Technical Bias: Neutral
• Short-Term Momentum: Weak

Intraday moves above 1.37 have so far failed to hold, with RSI and MACD indicators showing no clear directional bias.

Key Focus: Canadian Labor Market Report

Markets are now turning their attention to Friday’s Canadian labor report, a critical short-term catalyst for the CAD. While the June jobs data is expected to be stable, there are growing concerns about future job losses tied to government spending cuts forecast for next year and beyond.

Stay informed with Tredu.com for real-time analysis of Canada’s labor market and its impact on the CAD.